The first stage is to increase the capacity of the BPS, and we are actively working on this." Mr Vainshtok went on to say that "this is, of course, very costly; very very costly. We discussed this with colleagues that if we did not have such big risks from adjacent states, we would not have to spend so much money on this," he said. Primorsk borders on Finland and a second leg of the Baltic Pipeline System is planned that will transport Siberian oil from Russia to Germany across the Baltic seabed and on to the rest of Europe and the United States. "The Unecha-Primorsk pipeline leg is designed to increase the Baltic pipeline's annual capacity, which was raised to 74m tons/yr last year, and to provide stable oil supplies to our partners in western Europe," Mr Vainshtok said, adding that the new pipeline would help diversify Russian energy exports. "We expect to redirect half of the 100m (733m brl) exported through Belarus to Primorsk,"he said. In a separate development, approval has been granted by the Russian government for the transfer Russia's stake in the Caspian Pipeline Consortium (CPC) to Transneft, in a decision that was previously scheduled to be finalized by the end of 2006. Analysts point out that there was some controversy between the CPC and the Russian government over tariffs for oil transfer through the pipeline, as well as over interest rates on loans paid by the consortium to its shareholders. High interest rates decrease CPC's cost-effectiveness, while low tariffs are a disadvantage for Transneft, as the consortium's competitor. Transneft would therefore only take on the management of Russia's stake in CPC on certain conditions, which have now been satisfied.